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Oakmead Finance Ltd

Capital and Debt Advisory

Home Revolving Credit Facility Service

Revolving Credit Facility

  • Term – up to 12-month facilities
  • Approach– flexibility to use alongside other lending products
  • Use – on-demand facility to use if and when required
  • Pricing – ‘pay as you use’ pricing on funds you use not those you may use
  • Control – cash available and accessible when required

Revolving Credit Facility: What Is It?

Need a simple facility designed to provide short term access to immediate cash? To fund large orders, even out seasonal highs and lows or provide cash for upfront investment a non-bank business overdraft is a perfect solution.

A pre-agreed credit limit is established and the business can borrow up to this limit and repay as often required. The facility is on stand-by ready to be used or not providing peace of mind that cash is available With interest being charged at a pre-set daily rate and only when cash is being used it provides a cost-effective working capital solution.

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Need Help?

Please feel free to contact us. We will get back to you with 1-2 business days.

[email protected]
01732 497 345

Key Benefits

  • Up to 12 months of the revolving facility
  • Flexibility to use along with side ‘core’ bank lending products
  • Multiple drawdowns and repayments permitted, at no extra cost
  • Pay as you go pricing structure with transparent costs and no setup fee, arrangement fee or ongoing maintenance facility charges
  • Prefixed credit limit
  • One-off or repeatable transactions
  • Low levels of reporting
  • Only pay for funds used and not those that you may use

Do I Qualify?

By nature, these facilities are higher risk for the lender and as such a more stringent application process is undertaken. However, in general, you need to answer yes to all of these basic questions to qualify for a business overdraft facility.

  • Are you an LTD company, PLC or LLP?
  • Are you a UK homeowner or do you have other assets to offer as security for the facility?
  • Is your business based in England, Wales or Scotland?
  • Have you been trading for at least 2 years?

If you are unsure whether you qualify for this business overdraft facility contact us to talk through your options as other, similar, products may be more suitable such as a Single Invoice Finance facility or a Business Cashflow Loan.

FAQ's

How is the interest paid?

Interest is accrued on a daily rate while you are borrowing from the facility. Interest is then payable monthly in arrears by direct debit.

How is the business overdraft repaid?

The amount you are borrowing will generally be repaid when you are able to do so from receipts from your customers or debtors.

Do I have to repay the whole amount I am borrowing

Whatever works for your cash flow. Partial repayments of your business overdraft are absolutely fine.

Are there lots of administration to run the facility?

No. This facility is designed to be as close to a traditional business overdraft as possible. There is no monthly reporting or contact with a client manager as you would have with, for example, an invoice finance facility.

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How Oakmead Finance Can Help

With over 20 years of experience in structuring facilities across all sectors from startup businesses to corporate entities, we are best placed to advise and structure the right facility for you.

Contact us if you would like to explore whether a business overdraft is suitable for your business.

Free Consultation